Wheat prices remain in a bearish trend due to ample global supplies, higher U.S. stocks, and weak consumer hedging demand. The May WASDE report projects increased U.S. and global wheat inventories, pressuring prices and lowering the USDA's price forecast. Weather and geopolitical risks, especially in Russia and Ukraine, are key wildcards that could trigger price volatility or limit further downside.
Today, Teucrium launched the Relative Strength Managed Volatility Strategy ETF (RSMV). RSMV is an actively managed fund that looks to generate long-term capital appreciation for its investors.
India could see a warmer winter ahead, potentially putting wheat yields in jeopardy. The prospect of lower production could give prices a much-needed jump start to an uptrend.
On Friday, Teucrium launched two new commodity-focused ETFs. These two new funds offer leveraged exposure to the performance of agricultural commodities.
Wheat prices spiked near the end of May, but have since fallen to a year-to-date loss of 8.65%. However, prices could get a bullish spark especially if global weather conditions continue to deteriorate.
Wheat prices are highly sensitive to geopolitical events, with the ongoing Ukraine conflict posing potential supply concerns that could lift prices in 2025 and beyond. Despite a bearish trend since the 2022 record high, recent patterns suggest a potential short-term bottom in CBOT wheat prices. The KCBT-CBOT wheat spread indicates abundant supplies, reducing consumer supply concerns and contributing to the bearish outlook for wheat prices.
Bullish wheat traders are feeling the pinch from all parts of the globe. That's because various producers and consumers could affect how prices will look for the commodity in the second half of 2024.
Since Russia's invasion of Ukraine in early 2022, wheat prices hit an apex before falling back down to earth. As a top global producer, Russia is now looking to put a vice grip on the market.